India HR Guide

Mandeep Singh

This playlist discusses and sheds light on aspects that organisations in India follow in the area of Human Resources. It is aimed at CEO's MD and line managers to understand how various aspects of Human Resources can help shape their organisations journey in India. Our industry leading experts offer years of accumulated knowledge from having advised clients across sectors spread across the remotest corner of the country. Let's make the workplace, a better place.

  1. 3D AGO

    86, Statutory Principles for Calculating Compensation in India, Part 5 of 6 - deduction to payouts

    #HRhelpdesk #IndiaHRGuide #MandeepSingh, with 25 years of HR expertise, Mandeep turns attention to one of the most sensitive and highly regulated areas of payroll, wage or pay deductions. Building on the earlier discussions on wages and pay cycles, he explains that while organizations have discretion over how much they pay, they do not have unlimited freedom when it comes to deductions. Mandeep clarifies that deductions are tightly governed by statutory principles and must follow defined systems and processes. He explains what deductions are clearly permitted, including salary or other advances, statutory deductions and taxes, leave without pay, and employee benefit contributions such as insurance or pension schemes, provided there is specific, prior employee authorization. He highlights that even charitable or social contributions require explicit consent, detailing amount, duration, and purpose. The episode also addresses penalties, explaining that deductions for penalties are allowed only through a defined process and within legal limits. A critical safeguard discussed is the 50% cap, ensuring that total deductions cannot exceed half of an employee’s earnings. The episode concludes by emphasizing the accountability of HR and payroll teams in ensuring every deduction complies with statutory guidelines, not just payroll arithmetic. Link to download report: https://www.hrhelpdesk.in/reports-and-studies/

    4 min

About

This playlist discusses and sheds light on aspects that organisations in India follow in the area of Human Resources. It is aimed at CEO's MD and line managers to understand how various aspects of Human Resources can help shape their organisations journey in India. Our industry leading experts offer years of accumulated knowledge from having advised clients across sectors spread across the remotest corner of the country. Let's make the workplace, a better place.